My second REO assigment in the last two weeks, after a couple of dry months – could this be the beginning? I think it is, but the quality isn’t great yet, at least of the ones they send me. This 1,245sf house on Paseo Ajanta in Rancho Penasquitos will probably need to be in the low-$300,000s or lower to find a buyer:
They have to get better, don’t they?
Jim Klinge
Klinge Realty Group
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
CA DRE #01527365, CA DRE #00873197
Trustindex verifies that the original source of the review is Google. We sold a home with Jim and Donna and from beginning to end they were consummate professionals. Their initial walk through the property resulted in a list of items to be repaired or updated. They supplied a list of vendors and job quotes to do the repairs and updates. We originally wanted to sell ‘as is’ and just get it over with. They gave us a selling price for ‘as is’ and options for doing a few updates/repairs to doing it all with the selling price for each option. We agreed to do all they suggested and we sold for the exact price they predicted. For every dollar spent we got back more than $2 back in the selling price. And they got that price in a rising interest rate environment! Donna and Jim are extremely detailed and guide you through ever aspect of the sale. There were no surprises thanks to their guidance. We couldn’t be more pleased with their representation. Thank you Donna and Jim, Jerry and MaryTrustindex verifies that the original source of the review is Google. We have known Jim & Donna Klinge for over a dozen years, having met them in Carlsbad where our children went to the same school. As long time North County residents, it was a no- brainer for us to have the Klinges be our eyes and ears for San Diego real estate in general and North County in particular. As my military career caused our family to move all over the country and overseas to Asia, Europe and the Pacific, we trusted Jim and Donna to help keep our house in Carlsbad rented with reliable and respectful tenants for over 10 years. Naturally, when the time came to sell our beloved Carlsbad home to pursue a rural lifestyle in retirement out of California, we could think of no better team to represent us than Jim and Donna. They immediately went to work to update our house built in 2004 to current-day standards and trends — in 2 short months they transformed it into a literal modern-day masterpiece. We trusted their judgement implicitly and followed 100% of their recommended changes. When our house finally came on the market, there was a blizzard of serious interest, we had multiple offers by the third day and it sold in just 5 days after a frenzied bidding war for 20% above our asking price! The investment we made in upgrades recommended by Jim and Donna yielded a 4-fold return, in the process setting a new high water mark for a house sold in our community. In our view, there are no better real estate professionals in all of San Diego than Jim and Donna Klinge. Buying or selling, you must run and beg Jim and Donna Klinge to represent you! Our family will never forget Jim, Donna, and their whole team at Compass — we are forever grateful to them.Trustindex verifies that the original source of the review is Google. WeI had the pleasure of working with Klinge Realty Group to sell our home in Carmel Valley, and I cannot recommend them highly enough! Jim and Donna demonstrated exceptional professionalism, offering expert guidance on market conditions and pricing strategy, which resulted in a quick and successful sale. Communication was prompt and we were well-informed throughout the entire process. For anyone looking for a dedicated and knowledgeable real estate team, look no further! ---Trustindex verifies that the original source of the review is Google. Donna and Jim Klinge of Klinge Realty Group have our highest possible recommendation. From Donna and Jim’s first visit to our house through closing their advice and counsel was candid and honest in all dealings. They kept us fully informed throughout the process. The house sold less than three days after listing with a two-week closing. My wife and I have sold several houses during our lives. This was by far the best experience. Klinge Reality is a premium service realtor. You can’t make a better choice for someone to sell your home fast and for top dollar.Trustindex verifies that the original source of the review is Google. Donna and Jim provided exceptional support and professionalism throughout the entire process. We couldn't have been happier with their efforts. They made our house shine, and thanks to their expertise, it sold above the listing price in the very first weekend! Truly a fantastic experience from start to finish.Trustindex verifies that the original source of the review is Google. This year has been difficult on our family, mainly due to having to sell our home. Thankfully we knew God had a plan for us and working with the Klinge team was a key part of it. It was an obvious decision to work with them again after such an amazing experience when purchasing the same home we needed to sell. The challenge was, how will we do this in so little time with so much going on? Jim and Donna held our hand every step of the way. Whenever an unexpected issue arose they found and provided a solution. Never once did we feel pressured to make a decision and the Klinges were always reassuring after providing the information that the decision was ours to make. Despite the curve balls, they never panicked and exemplified the “can do” attitude, making us feel optimistic and taken care of. Their expertise and professionalism was superb. But of all the reasons to work with the Klinges, the most impactful and valuable is their compassion and genuine care for their clients. We pray that we can one day purchase our forever home and you better believe that Jim and Donna will be representing us - as long as they will have us of course. Thank you again Klinge team! Your execution, experience, and care are unmatched.Trustindex verifies that the original source of the review is Google. Jim and Donna were fantastic! Jim understanding my needs, recommending potential places, pointing out the pros and cons of each property was invaluable. Then when the offer was accepted Donna’s organized guidance through the inspections, paperwork etc made the whole process seem effortless. So grateful that I had them on my side!Trustindex verifies that the original source of the review is Google. We first found Jim through his blog at bubbleinfo.com, which really showcased his knowledge of SoCal real estate. Since then we've done three transactions with Jim and Donna, and they are an incredible full service agency, with Jim's deep market insight and Donna's deft contract and project management. We trust them implicitly in their analysis and strategy, which is based on years of experience. They're always available and on top of things, and we strongly recommend them to anyone.Trustindex verifies that the original source of the review is Google. The Good The Klinge Realty Group operates like a finely tuned machine, with a very personal touch. We contacted them on a Sunday and they were talking to us about our family and our needs on our living room couch the following day. They carefully listened to us and worked with us to identify the best and quickest path to listing within 2 weeks to take advantage of the low inventory conditions in our South Carlsbad neighborhood. They knew our tract specifically and had many previous sales there over the years - they came prepared with a thorough analysis of comparative sales and recommended a pricing strategy that they felt confident would yield offers the first weekend on the market. The Great Over the next two weeks Donna coordinated a range of vendors who she knew from experience could get the preparation to list work we needed done on time and with high quality. Our light tune-up involved excellent experiences with their stagers, landscapers, contractors, electricians, and plumbers. Throughout this period Donna's daily communication was clear, concise, and responsive. Any time we had questions Donna picked up the phone or texted immediately - but almost always, she answered our questions before we even knew we had them. The Outstanding We had a tricky situation with a shared fence that could have delayed our escrow. Donna used superb mediation skills to negotiate the terms of replacement and was personally on site with the fence contractor to make sure everything went smoothly. The fence looks great and escrow closed on time. The Truly Exceptional Our house came on the market on a Wednesday and between then and Monday morning Jim was personally at all three open houses. He was in constant communication explaining potential buyer reaction and strength. As he predicted offers began to come in on Saturday and each one was incrementally higher than the last. At the end we had 5 offers, 4 of which were over list, and the final accepted offer was $100,000 over list. In addition to being over list it included rent back terms that met our needs. The Recommendation For all of these reasons we would strongly recommend The Klinge Team to anyone wanting to sell in North County Coastal San Diego. I had been reading Jim's bubbleinfo.com blog for 15 years and knew when the time came to sell that he would be our first call. Jim Klinge is not your standard realtor. He is keenly aware of market conditions and sales strategies. And, works his tail off - though not as hard as Donna . At this point he's gone from realtor to friend and I plan to have him over to grill and chill at our new place to talk real estate, but also just about life and raising kids in San Diego. He's more interested in relationships than his sales numbers - and that's why his sales numbers are so high. We have already recommended the Klinge's to some close friends and another successful sale is on deck right around the corner...Trustindex verifies that the original source of the review is Google. We recently had the pleasure of working with Jim and Donna from Klinge Realty Group to sell our house, and we couldn't be more satisfied with the experience. From the initial meeting, they listened attentively to our needs and provided invaluable guidance on specific improvements to get our home market ready. Their responsiveness throughout the entire process was truly impressive. Anytime we had questions or concerns, they were quick to address them, ensuring we felt comfortable and informed every step of the way. What stood out the most was their team and extensive network of tradespeople, which made addressing any necessary repairs or updates seamless and stress-free. Thanks to their expertise and dedication, our house sold quickly and at a great price. We highly recommend Jim and Donna to anyone looking to buy or sell a home. They are a fantastic team who truly care about their clients and deliver exceptional results.Load more
Nice belly shot. Thanks, there goes my dinner.
“I guess things didn’t work out to good”. Classic. Your a true straight man.
“It’s a misunderstanding.” Nice landlord comment. That renter had a decent head on his shoulders in spite of “the BIG truck” convention in front of the place.
Rock on.
Good stuff. Its interesting to see how things go down on the front lines.
I hate reality tv, but I loved that. If I didn’t know better I’d think you were in some Florida barrio with the toplessness and big pickup. Owners asking for rent after a foreclosure should go straight to jail without a trial. How much is the cash for keys again?
That totally sucks. We have friends who just went through something similar as renters.
At least the renter was smart enough to not pay the rent when the deadbeat LL was going into foreclosure. These rent-skimming LLs should be sent straight to jail, and should also be fined treble damages, payable to the affected renters.
These foreclosed-on renters are the only true victims in this housing “crisis.”
i think it’s great the renter gets the cash for keys money. i would’ve thought the owner was entitled to it or would at least try to get a piece.
would those 30 or 60 days he has left there be rent free? if not, what if he refused to pay?
“I’m a realtor…Jim the Realtor”. Priceless.
Jim,
You handled that perfectly.
The guy renting is caught in the middle between a deadbeat owner and a greedy property management company trying to get something for nothing.
That could have been a lot worse.At least you werent confronted with a shotgun or pistle whipped out in the front yard.They dont pay you enough to deal with that crap.You should hire a bodyguard to go out with you.Or better yet stop into home depot and pick up a couple friends for protection if all hell breaks lose.I kind of reminds me of those domestic violence calls cops get.You never know what will happen in those cases.
What a sleazy scumbag debtholder to be collecting rent 6 months since he stopped paying for the house, some people have no shame.
The owner is a dirtbag for trying to collect rent on a house he’s defaulted on.
Arizona makes a great point about being prepared for a confrontation when making these types of visits.
Handled that perfectly. A pretty dangerous position to be in with the wrong tenant. I would wear a vest.
I thought the video was informative and helps to show how these situations work out. I don’t know about the “greedy property property management company” –Shadash They are stuck too and don’t get paid unless rent get paid.
Something else to keep in mind regarding required consent for recording others.
http://tech.yahoo.com/blogs/null/150820?comment_start=26&comment_count=20
With all of the stories I have heard. I would bet 1 out of every 30 homes in SEH has had something like this going on in the last 4 years. Between those living in their homes for free and those collecting free rent. It is sad to see people have no ethical problem with this.
Wiretapping is a class D felony, and that can mean up to 12 years in prison.
Dang, I guess I won’t be needing that spy tie that just arrived!
“greedy property property management company” –Shadash They are stuck too and don’t get paid unless rent get paid.
How exactly is the property management company “stuck”? They have the renters deposit.
“In 12 states (California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, Pennsylvania, and Washington) you’re required to get the permission of all parties on the line before making any kind of recording.”
If the guy had a problem with being recorded he would have objected.The recorder was in clear site and not being concealed.
Jim, the tenant has the right to stay for another 90 days or until the end of the current lease term, whichever is greater.
If the new owner intends to occupy the house as a primary residence the tenant has 90 days regardless of the lease term.
The tenant is expected to pay the rent during that time.
CA law says 60 days, last May’s Federal law extended that to what I wrote above.
You can sell it with the tenant inside, but you need the tenant to be cooperative and let buyer/inspector/appraiser enter the property.
The inflationary hedge I bought few months ago was like that. I let the tenant stay until the end of 90-day term without paying the rent. The tenant took good care of my hedge and surrendered the keys on 90th day.
Bet ya have a line of folks willing to pony up at least 375K for that one. Should sell for at least 400K
PQutness,
There’s another foreclosure down the street (#090042020)that doesn’t back up to the 15 selling for 365k and has been on the market for the last 80 days.
So maybe Jim will get 400k. It all depends on finding the right FHA funny-money buyer.
That’s a rough job, Jim. I agree that both you and the renter handled it well. Do you have any good stories of things going wrong when delivering the bad news?
Oh the joys of REO’s. You should make the asset manager ride along on your next trip and send them to the front door to give notice. I was under the impression that finding a rental using a property management company would prevent you from dealing with deadbeat LL’s. I guess there’s probably as many bad, unethical property managers as there bad, unethical realtors.
Great video keep up the good work.
That went about as well as it could have. I was a victim of rent skimming by a deadbeat LL a couple of years ago down by the beach in oside. I can’t tell you how angry I was when I found out. Of course I got the same BS “we’re working things out with the bank”.
I researched the law and talked to a lawyer about options, but in the end I didn’t want to get my name on any lawsuits or eviction proceedings. I didn’t even get cash for keys. I also never got my (significant) deposit back from the dirtbag. They should assign a special task force to prosecuting these lowlifes.
It was my understanding (could be wrong) that a property management(PM)company is just a middle man between the tenant and landlord. I wouldn’t think the PM would necessarily know whether the landlord is making their payments or know if a foreclosure is pending. The PM makes their money from a percentage of the rent paid. An agreement is establshed between the PM and the landlord. Any funds left over from a deposit goes to landlord.
By the way I’m glad the video was made and was handled well. It highlighted a number of issues facing folks in this market.
REB,
I’m not an attorney so I’m not giving legal advice here, but I used to do a bit of magazine writing and I tried to stay aware of the rules on taping. California makes a distinction between conversations that happen where a person has an expectation of privacy and those that happen where others could overhear. Here’s a quote (I’ll add the full link to this and another article at the end of the post):
“Conversations that occur in a public space or in an area where the parties do not have any expectation of privacy are not covered by the wiretapping statute. Therefore, you generally are free to record a conversation happening between people in a public place, such as a street, a park, or on the steps of a courthouse, even without consent.”
http://www.citmedialaw.org/legal-guide/california/california-recording-law
http://www.rcfp.org/taping/states/california.html
A story viewed by a lot today about a WF foreclosed home occupied by its exec
http://www.latimes.com/business/la-fi-malibu-wells11-2009sep11,0,740504.story
Jim–You handled that so well and the renter seemed very reasonable, which helps. That encounter was living proof of that old saying, “the truth will make you free.” You didn’t try to spin or BS. If only all parties to such events would be truthful and fair, a lot of these dishonest games wouldn’t play out. I agree with all who said that these landlords who know they are in default are real vermin for collecting rent when they no longer actually own the property. Who knows–you may have gotten a new client for yourself with this renter. Please update us on this.
How much does cash for keys give a person to move out? If it’s only a thousand bucks, I’d be more inclined to just squat for 2 months than to take the cash and move.
Also, this comment section is getting out of hand. I used to enjoy reading them, but now all I see is the same broken record: “deadbeats, scumbags, throw em in jail.” I’m starting to think some of you posters are crazier than the housing speculators.
I would like to see a new law changing the rent skimming. Basically LL should be required to hold rent in an escrow along with the deposit once they are in a foreclosure. If they can’t afford to do this, the renter has the right to stop paying rent until he recoups his deposit plus one month’s rent to cover the cost of moving. And LL should be required by Law to CC renters on all notices involving a foreclosure. Failure to do so should also be a felony and include 6 months prison. While the LL would likely never go to prison, it would be on his / her record and would stop much of the abuse.
I think I need to write my state legislator. Maybe we can get them to do something good for once.
Hey Jim
REO question. Lets say you have a REO listed at 350K. Would a bank give any preference to all to a cash buyer say at 300K?
I guess my question is how much weight does an all cash buyer have with regard to a “faceless” REO owner.
I think the desision making differences between traditional sellers vs. REO managers is pretty interesting to hear about.
Have a good weekend.
LM
chrisL, you might have a different opinion if you were the one being scammed out of thousands of dollars.
If you don’t think someone should go to jail for doing something illegal then I don’t know what else to say…
Question about Sherrif reimbursements?. . .I saw an item in the national press today about how sherrif departments are spending a huge amount of time serving foreclosure notices – sometimes two a day. . .is there any reimbursement from banks to the departments??. . .seems to me that the taxpayers otherwise are footing the bill for lots of sherrif time that could otherwise be used for crime prevention, etc.
“chrisL, you might have a different opinion if you were the one being scammed out of thousands of dollars. ”
How are you being scammed out of thousands of dollars when you are living there? You have a contract with the home owner. You signed the contract to pay on an agreeable date in exchange for renting the property. It is between you and the property owner. If you don’t make rent payments then the owner can evict you.
Whatever agreement the owner has with the bank is between them and the bank. Not you! Rest assured, if they fail to pay the bank then the bank will assume ownership. Those are the consequences.
There is nothing illegal about that. Wake UP!
so they can keep your deposit and tell you to get out for no reason. you don’t know what your talking about, I researched it at length.
“so they can keep your deposit and tell you to get out for no reason. you don’t know what your talking about, I researched it at length.”
What are you talking about? You make no sense. I also seriously doubt you researched this topic at length. More like you googled it while drinking a PBR.
Whatever agreement the owner has with the bank is between them and the bank. Not you! Rest assured, if they fail to pay the bank then the bank will assume ownership. Those are the consequences.
Except the LL gets a pile of cash from the tenant and some ruined credit, while the tenant has to move.
You signed the contract to pay on an agreeable date in exchange for renting the property. It is between you and the property owner. If you don’t make rent payments then the owner can evict you.
Except the LL failed to make his payments, so you have to move out before the end of your lease. That would be breaking his end of the contract.
I agree, that if they stop paying the mortgage, there is a good chance you won’t get your deposit back, plus you now have to look at relocating before your rental contract period is up. Therefore, this is an added expense in time and money to the renter to relocate. Why continue to pay? Better to be smart about it like this guy was. I bet a percent of the increase in “savings rate” nationally is landlords pocketing rents and not paying their mortgages and milking the system for as long as they can. For simple numbers, if you had 10 properties, each paying an average of $2000 per month, and you held of paying the mortgage for 12 months, that’s $240,000 for the year! Heck, make a couple payments to keep the bank happy through that time, run it out to 2 years, and you would have over $400,000 in the bank. If you’re a renter, try to hold off for 1 year and you now have $24,000 in the bank for a downpayment on your own place!
Jim, unfortunately, this guy should hold out for the maximum 90 days and save the approx. $6,000 for himself ($2,000 x 3) to make up for his lost deposit, having to relocate, pain and suffering, etc.
told ya…..
“The District Attorney’s Office has decided not to file charges against Chargers linebacker Shawne Merriman in the alleged domestic dispute with MTV star Tila Tequila.”
Woot! That’s gotta be a relief for everyone involved. Any chance we’re going to retain Merriman after his contract’s up?
I think I agree with chrisL on some issues with this whole landlord deal.As long as the landlord owns the house the tenant should keep paying rent to the landlord.If the bank takes the house back and is the new owner than tenant should deal with the bank.As long as the landlord is the owner they should get rent regardless if they have been served with a notice of default or notice of trustees sale.The landlord could clear everything up on the corthouse steps and retain possession of the house.They are the owner until an officail trustees sale.I have heard countless arguments from renters saying they dont need tyo pay rent if the landlord is having issues.That is just an excuse not to pay rent.
Merriman….Off the hook….again! He has been pretty lucky. Maybe now he’ll play some football instead of spending much of his time drinking at downtown clubs…..
That was a very weird video to watch… a executive at my work is here from Australia on an extended business stay (3+ years), and rents nice big houses in Aviara. He’s been booted out twice now by the homeowner defaulting, and now is looking to move. He has to ask if the property he’s about to lease is in foreclosure, they don’t disclose it. So far, 3 of 4 are in the foreclosure process and the 4th guy got pissed off and was insulted that he ask.
Go figure.
You know AJ Smith doesn’t like Shawne’s “Hollywood” lifestyle, and he’ll run him after this year.
Unless we win the Super Bowl?
LM,
The most discount I’ve seen an asset manager give to a cash buyer is only $5,000 or so, but that was a few months ago.
The owner-occupiers are now are going so much over list price that the investors are being left behind.
“Unless we win the Super Bowl?” (Jim)
Hate to break your heart, JtR, but your Chargers will NOT win the Super Bowl…
Now reread, the first five words of my reply, Jim. I’m trying to be as compassionate as possible just as you were to me re: that solar house. Alas, *Sniff Sniff* it was the “saddest” news I’ve ever received via email…
I’m not saying that the tenant should stop paying rent, but the landlord collecting the rent and not informing the tenant that the house is going back to the bank is unethical and dishonest. Did that LL have any intention of keeping the house? The first the tenant hears about the NOT shouldn’t be from the sheriff.
I don’t understand why people are assuming the deposit will be lost. The deposit I have for the condo I rent is kept in an escrow account and is only to be distributed to the owner under the terms of my rental agreement like if I damage the condo and money needs to be used for repairs. It is untouchable by either the property management company or the owner except under the explicit terms of the rental agreement. Is California different and let’s deposit money go directly to the owner? Who the hell rents under those kinds of terms?
People desperate for housing maybe?